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Nagel Maintains Hawkish Tone

ECB
  • *NAGEL: ECB RATES TO STAY RESTRICTIVE FOR SUFFICIENTLY LONG TIME – bbg
  • *ECB’S NAGEL SAYS ‘SEVERAL’ INTEREST-RATE HIKES STILL NEEDED - bbg


  • Speaking in Berlin, Bundesbank’s Nagel says “The course of monetary policy tightening has not yet come to an end,”… “Several rate hikes will still be necessary to reach a sufficiently restrictive level. And we will then have to maintain this level for a sufficiently long time. Until inflation has come down.”
  • The tone reiterates May 12 comments that more ECB rate hikes look necessary and tightening might be required after the summer break, with subsequently little immediate reaction in EURUSD (holding -0.3% at 1.0777 off earlier session lows of 1.076 for joint lows with May 19 and initial support).

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